Franklin Templeton: The friendly winds of encryption between the United States and Asia may inject a strong dose of confidence into the European Union.

Gate News bot news, Catriona Kellas, the international legal head of digital projects at asset management company Franklin Templeton, stated at the DigiAssets 2025 conference that due to the legislative pace lagging behind the United States and Asia, the European Union could become a "flyover zone" for crypto assets between the United States and Asia.

"This technology does pose risks, and a few years ago, jurisdictions that were at the forefront can easily fall behind if the legislative process takes too long," she said, noting that "other jurisdictions" have adopted more flexible policies towards Crypto Assets.

She noted that the European Commission seems to have taken this into account and recalled a recent conversation, "They mentioned a word I had never heard before, which is 'competition.'"

"They definitely asked the right questions," Kellas added, noting that the rumors surrounding "MiCA 2" (the updated version of the Crypto Assets Market Act) are "far more than just rumors," with the legislation set to take effect in June 2023. "It could be coming soon," she added.

Kellas also mentioned the European Union's Distributed Ledger Technology (DLT) pilot mechanism. This mechanism aims to provide a sandbox for Crypto Assets companies while regulators observe developments. The facility has only been in operation for a year, but officials are "working hard to renovate it to ensure it is fit for purpose."

She also stated that concerns about MiCA 2 potentially being more restrictive "may be alleviated as we see some European countries paying attention to the situation in the United States and the Asia-Pacific region."

Source: Decrypt